WASHINGTON – A bill sponsored by U.S. Rep. Cory Gardner, R-Colo., to speed approval of liquefied natural-gas exports passed the House on Tuesday.
The bill caps Department of Energy decisions on applications to export liquefied natural gas, called LNG, to countries that do not adhere to free-trade agreements at 30 days after an environmental review.
Amid strife in Ukraine, there’s been a push from both sides of the aisle to streamline the LNG export process, thus reducing reliance on Russia for energy. Sen. Mark Udall, D-Colo, recently introduced a similar bill that would limit the approval process for LNG export terminals to 45 days.
“By passing this legislation, we are sending a clear signal to the world that the United States is serious about becoming a key player in the global energy market,” Gardner said in a statement.
The bill passed 266-155, but faced criticism from some lawmakers who worried there could be unintentional effects on Americans’ energy bills and the environment. Rep. Rush Holt, D-N.J., said he thought the “assumption that it is always in our national interest to export,” was misguided in the case liquefied natural gas.
Gene Green, D-Texas, noted states like Texas and North Dakota wells commonly use the practice of “flaring,” in which natural gas is burned because it cannot be processed or sold. Green said legislation would ensure that gas is always used.
“Let’s use all of the natural gas we can in our country at a reasonable price,” Green said while debating amendments to the bill. “What’s left, let’s don’t waste it, lets sell it to someone else.”
Roger Zalneraitis, executive director of the La Plata Economic Development Alliance, said increasing “liquid” natural-gas exports could cause a trickle-down effect to local communities.
“It will help raise natural gas prices – not tremendously, we aren’t going back to grandma can’t afford the heating bill like 2008 gas prices, but high enough to result in some additional permitting exploration in San Juan Basin,” Zalneraitis said.
La Plata County is second in the state in natural-gas production, with 3,300 active wells, according to the Colorado Oil and Gas Conservation Commission.
The price of natural gas has been relatively deflated the past few years, so there hasn’t been a great deal of natural-gas activity going on in the San Juan Basin, but that could change once the industry is connected to the global market.
“Anything that would enhance peoples’ bravery to do an exploratory well or drill a well we’ve already had approved can help,” said Christi Zeller, executive director of the La Plata County Energy Council.
With gas exploration, Zalneraitis said, comes jobs.
“A drilling rig can create 100 to 125 jobs, and indirectly 25 to 50 more. So that would be a big impact on the local economy,” Zalneraitis said.
Mary Bowerman is graduate student at American University in Washington, D.C., and an intern for The Durango Herald.
